Attorney General Bill McCollum News Release
May 20, 2009
Media Contact: Jenn Meale
Phone: (850) 245-0150
en EspañolPrint Icon Print Version

Florida Attorney General Joins Federal Enforcement Action Against False Charities

"Operation False Charity" includes actions taken by federal, state authorities


TALLAHASSEE, FL – Attorney General Bill McCollum today announced Florida’s participation in a nationwide enforcement effort against fraudulent charitable solicitors which claim to help police, firefighters and veterans, among other supposed charitable causes. The effort was lead by the Federal Trade Commission, together with 61 Attorneys General, Secretaries of State, and other law enforcers of 48 states and the District of Columbia.

“In these tough economic times, the thought that disreputable individuals are using charitable donations for their own profit is just abhorrent,” said Attorney General McCollum. “I am proud to be part of this coordinated effort to protect our state’s good samaritans.”

The actions announced today as part of “Operation False Charity” include 76 actions against 32 fundraising companies, 31 individuals, and 22 nonprofits or purported nonprofits on whose behalf funds were solicited. These defendants allegedly tricked consumers into giving by claiming affiliations with law enforcement and veterans groups or misleading consumers about how much of the money donated would actually go to those groups. According to the FTC, the defendants used legitimate-sounding names to give their organizations a veneer of credibility. Their real goal was to trick consumers into contributing money that was overwhelmingly used to support themselves and their fundraisers.

As part of the operation, the Attorney General announced that Florida and numerous other states have filed a lawsuit against a professional solicitation company which solicits funds on behalf of over 35 charitable clients but allegedly keeps an overwhelming percentage of the donated funds. According to its contracts, Community Support, Inc. generally kept more than 80 percent of all money donated to its clients and in some situations kept as much as 90 percent, leaving just 10 percent for the charity.

The lawsuit alleges Community Support often misrepresented how much of the funds actually went to a charity and how much would be spent in the donor’s local community. Other allegations include harassment of call recipients, falsely claiming to be law enforcement or veterans, or falsely claiming a person had previously made a pledge when he or she had not.

Community Support, via pending consent judgments, has agreed to cease all improper or illegal conduct, and a Florida settlement is imminent. Additionally, the company will have to regularly report information to the states and be more responsible for its employees’ training, conduct and representations made to consumers. Community Support also agreed to reimburse the states $200,000 for the costs of the investigation.

In addition to announcing the enforcement efforts, the FTC and the participating states also offered consumer education resources about charities that solicit donations on behalf of veterans and military families. Many of the following tips apply to other charitable giving:

- Recognize that the words veterans or military families in an organizations name don't necessarily mean that veterans or the families of active-duty personnel will benefit from your donation.

- Check out an organization before donating. Some phony charities use names, seals and logos that look or sound like those of respected, legitimate organizations.

- Donate to charities with a track record and a history. Charities that spring up overnight may disappear just as quickly.

- Do not send or give cash donations. For security and tax record purposes, its best to pay by check made payable to the charity. Ask for a receipt showing the amount of your contribution.

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